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Hong Kong airport targets raising $4 billion in bond deal

by Mike Robinson

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© Reuters. FILE PHOTO – Closed counters can be seen in the departures hall at Hong Kong International Airport following an outbreak of coronavirus (COVID-19), which occurred in Hong Kong, China, February 2, 2021. REUTERS/Tyrone Siu

By Scott Murdoch

HONG KONG, (Reuters) – Hong Kong’s Airport Authority would like to raise as much as $4 billion through a bond offering. According to two people with direct knowledge of this matter.

Because the information is not public yet, sources agreed to speak anonymously.

Reuters obtained a termsheet that revealed 22 banks have been given authority to complete the deal.

Hong Kong’s airport authority (which operates Hong Kong’s main international airport) did not respond immediately to a request.

Investor sentiment toward the airport will face a significant test as it seeks to raise up to $4Billion. The airport has already been affected by increasing numbers of bans on flights imposed by the Hong Kong government in its pandemic restrictions.

The term sheet states that Tuesday is the start of calls to U.S. and European investors for them to evaluate demand for a deal.

According to the term sheet, one of the planned tranches is a five-year green bond. This will be issued by the Sustainable Finance Framework, which was recently launched.

According to the most recent public information, the agency reported a loss in the amount of HK$4.4 billion (or $5564.21 millions) during the 2020-2021 fiscal year that ended March.

($1 = 7.7985 Hong Kong dollars)

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